Reserve Bank of India (RBI) may cut the interest rates to boost economy at its annual credit policy. If this happens it will be the first rate cut by the RBI in three years. The inflation had eased for the month of March. India's inflation declined marginally to 6.89 percent in March as compared to 6.95 percent in the previous month.

The RBI is widely expected to cut its main lending rate, the repo rate, by 25 basis points to 8.25 per cent. The rate cut will lead to lowering of the housing and car loans. Following is how loans are set to get cheaper if the RBI slashes interest rates by quarter basis point:

On a loan of Rs 20 lakh for 15 years one could save at least Rs 307.

For Rs 20 lakh loan for 20 years one could save Rs 332.

And for a Rs 30 lakh loan for 30 years one could save at least Rs 449.